ECB ANNOUNCEMENT, FED MEETING DISAPPOINT MARKETS
American stock futures gave up some early gains after the European Central Bank (ECB) announcement that eurozone interest rates will remain the same. While many economists believed that would be the case, it seems investors were hoping for more than that. ECB President Mario Draghi, during a press conference, reinforced his commitment to the euro, stating that it is an “irreversible” union. He also called to governments, saying they need to “stand ready to activate bail-out funds.” Stock futures and Precious Metals moved into the red as Draghi spoke.
The Federal Reserve said yesterday that actions would be taken to stimulate the economy. Yesterday’s drop in Gold’s price was the biggest in more than three weeks, and was largely due to the lack of announcement by the Fed. However, buying of Gold by central banks is still supporting the Gold price. UBS said in a note, “[Central bank buying] has been providing investors with some comfort, that stronger hands are active.”
At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:
- Gold, $1,598.40, Down $6.50.
- Silver, $27.32, Down $0.32.
- Platinum, $1,394.00, Down $7.30.
- Palladium, $576.40, Down $7.20.
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